Cloud computing and, especially cloud accounting becoming more and more popular today. Most of us have smartphones, tablets, or just are connected to the internet daily through our desktop computers. The speed of life has increased significantly, and people want to access any information fast and on-the-go. As demand for programs that can help business owners to stay connected with their businesses has increased, so as the supply. There are many tools and programs now on the market that help entrepreneurs stay on top of their operations without the need to be in the office or any other physical location.
Cloud accounting software is one of the major tools that help business owners understand their businesses and make informed decisions based on historical information about their company’s performance. If you are an accounting pro, a business owner, or someone who wishes to become one, mobility and speed are the major success factors in today’s business world. That is where some easy online accounting software becomes handy. Let’s have a look at the
Major benefits of using cloud accounting software
All top online accounting software packages are now designed with the thought of being accessible from anywhere and on any device. Those business owners who are always traveling, meeting with clients, perform their work away from one physical location, can access their accounting records directly from their smartphone.
You cannot beat the benefit of invoicing your customers, paying bills, reviewing financial statements, and much, much more, from your phone wherever you are in the world! This is something that most cloud accounting software programs provide you with and what would not be possible with the desktop program installed on your office computer.
Let’s say you specialize in home renovations. You just completed your work and are heading to your next job site. By the end of the day you are so tired that all you want to do is to lay on a couch and watch a movie. With the traditional accounting system you have a few invoicing options:
- Write down your customer’s name on a “sticky note” and put it on your monitor, so you don’t forget to invoice them tomorrow or anytime you’d actually have time for it.
- Don’t go to your couch. Turn your computer on. Invoice and send the bills to the customers.
- Ask your spouse, who is already tired after full 8-hour (or more) work day, cooking, and taking kids to and from various afterschool activities to bill your customers for you. Since you are still watching your movie, it looks like an excellent option, until your spouse decides to boycott this type of arrangement and lays on a couch with you instead of doing bookkeeping.
With the cloud accounting software (QuickBooks Online, Wave) all you have to do is open the app on your phone after the work is done, create an invoice with a click of a few buttons and send it to the customers. You may even get paid on the spot if you use some add-ons that allow you to receive payments on-the-go as well.
4) Sync with the company’s bank account
Synchronization with banks, credit cards, PayPal, and other payment processing services is becoming one of the most popular features even amongst some of the desktop accounting programs and simple online accounting software. However, if you decide to use cloud software, bank feed is always included with it. Why is this important? It helps with bank reconciliations, speeds up bookkeeping process, and, most of all, reduces your labour costs!
5) Improved communication with the accountant
As a business owner, if your choice is to outsource bookkeeping, rather than doing it yourself, you can still have a lot of control over their business’ finances. You can log in through the app or your desktop computer, analyze your data, and, if you have questions about certain transactions or other things your accountant already processed, contact them right through the software by sending a message related to a specific charge, invoice, or anything else that looks strange to you.
6) Timely reporting
This is one of the greatest things available to business owners through the cloud accounting software packages. Even if your accountant is away on vacation, you may always log in from anywhere on the planet and find the reports that are readily available at any time of the day. Depending on a software package, these may either include the ones that accountant prepared for you in advance or the ones that are based on the most recent live data entered into the company’s accounting software.
7) Reduced software costs.
When it comes to starting a business, every dollar counts. Whether it is marketing, accounting, materials’ purchases or any other expense, it is important to stay on top of your budget. When choosing between cloud and desktop accounting software packages, cost becomes one of the major factors for new entrepreneurs. One of the greatest benefits of using cloud accounting software is that you may start small and, as your business grows, you may add or remove whatever features your business. Most cloud accounting software packages offer many add-ons or apps that you may add or delete at any time if you decide that this is not the best solution for your business. You may start even with the free accounting software (Waveapps is one of them) and, as you grow, keep adding functionalities to it. Another great thing about adding the apps to your accounting software is that it feeds the data directly to your books, reduces the time required for bookkeeping, and gives you a better way to track all major costs unique to your business.
8) Tracking of various expenses becomes flawless.
No matter what your business is about, there are apps and add-ons for almost any accounting software that currently on a market. From apps that take pictures of your receipts and store them securely on a cloud (Expensify), to time tracking (Tsheets), budgeting (even has it built in within the software!), and many other little neat features that you might want to use in your business to improve your operations.
9) Reduction or even elimination of IT costs.
This one is more than obvious – if you can control your finances from your phone, why would you need a computer?! You don’t need the server as well since all data is securely saved on a cloud. You don’t even need the additional storage for all your accounting documents as, for example, such software packages as Xero provide lots of space for all kinds of attachments that you’d want to add to any transactions you record.
10) Makes your accountant happy
Ever wondered why your accountant charges you so much at the end of the year? Preparation of income tax return does not take much time, so what is it that makes your accountant complete yours for so long? Bookkeeping, of cause! When proud business owners bring garbage bags of receipts at the end of the year to the accounting office, accountants do two things – a) start crying; b) charge ridiculous bookkeeping rates. When the same business owners simply share access to their books completed promptly in a cloud accounting software with the accountants, the year-end charges get reduced significantly, and income tax returns are completed much faster as well.
To summarize, I don’t see any reason for not giving it a try to a cloud accounting software. The major benefits of using cloud accounting software include convenience, speed, better control of business finances and operations, and much, much more. If you still have doubts and would like to learn more or need help with the chart of accounts setup, integrations with e-commerce, apps, or even simple bookkeeping, let us know in the comments below or contact us directly.